What? What do you mean it is up 2.4%? How could that be, when the inventory is so scarce? There were nothing to buy in Silicon Valley. It must be only in Central Valley where nobody cares.
I don't see how this could be bad for the economy. Oh, yeah, I forgot. This is bad for the 1%, and the media is controlled by the 1%. The 1% must be getting desperate. When the economy was bad, really bad for the 1%, the Feds had stepped into increasing the price of commodity by QE. Now the QE is ending, we should have known that the high price of oil was coming to an end. The demand by Chinese market is not really waning as their GDP is still growing. When Feds were helping the 1%, the rest of the economy was suffering. The 1% has recovered by hoarding more money from the middle class. Hence the middle class was disappearing fast. Now, QE is ending, we have to pay less at the pump and at the grocery stores.
So who were the idiots that believed in trickle down economy? You guys are idiots. People are greedier than you think they are. They are hoarders. They swindle money from the middle class and hoard the money. We should call our economy "Hoarding Economy." And we should abandon the idea of giving tax breaks to the rich. It is ridiculous. Now, we can use the money we saved at the pump and the grocery stores to buy other goods. That will move the money around.
Wait a minute. American aged 16 and older not participating in the labor market? Not participating? You interpret to mean that there is less job out there or bad economy? My kids and my friend's kids are not looking for a job. After i read you guys' comments, I am confused. I need to go check my eyes. No matter how many times I read, it looks like 16 to me. This is a classic omission of information to mislead the readers into thinking something more sinister is going on. Before making a judgement, do your own diligence.
I first thought about using this story as how giving tax credit to the rich has disseminated the middle class with the hoarding economy. Then I find that so much information is missing from this story. This is media manipulation called omission of information to mislead us to think something else. The rent is indeed expensive in Silicon Valley. But if you look carefully, there are places with more reasonable rents even in Silicon Valley.
zzyzzx, shut up already. A god damn idiot has to repeat everything.
Well, the government made a conscious effort to raise the cost of housing to help the rich and hurt the middle class who would be the main engine for the housing market.
I don't get this. ISIS has been doing much worse stuff to everyone around the globe. And this one incident is going to make a difference?
I just can't picture Japan going to attack any country with the current law that the US has imposed on Japan after the WWII. Even with the last Gulf War, Japan was only able to pay the US $90 billion as a form of aid for the war. I just can't see how Japanese citizens would agree to any war with another nation.
So let's not get our hopes up high in thinking Japanese would join the fight against ISIS.
20-25% correction in the stock market is too high right now and prefer to watch from the sidelines until either the market corrects or it becomes obvious that I screwed up.
Iwog, this is a pretty weak bearish statement from you. I am surprised.
Hmmm? I thought the last real estate crisis was caused by the unrealistic expectation of return from the real estate market. No?
People for some reason have averse reaction regardless of whether it affects them or not, when it comes to tax increase. It is laughable. Opposing this tax increase would only benefit rich and hurt the middle class. Boehner is Republican, and their agenda is to help the rich enable suck more from the middle class.
Year, sure, you use that money to keep building, then on the surface your growth may look like 7.3%. However if these buildings are left empty, it is not a true growth of the economy. These assets need to return some profit. Each day goes by without a profit, the asset shrinks at the rate of interest. To counter it, you pump more money. If you pump trillion dollars, it will take some time to deplete it. But when it does, it will take exponential speed to make the situation worse.
We should know the history. There was a roaring 20's which is followed by the depression and 2 World Wars. China is following the same fate. To make the matter worse, China is building weapons and arms stealing our technologies.
The difference this time is that China has a nuclear weapon. Just watch. China has begun to muscle smaller nations.
What boggles my mind is that even the middle class who has absolutely nothing to do with this tax hike will be on the bandwagon to oppose this plan. Regardless of where the tax revenue comes from, the government will always squander the money. So wouldn't you have it come from the rich who has benefited from the government hand out as in the form of QE?
QE has only enabled the rich to suck up more from the middle class.
Then again, we are living in a hoarding economy, and I know the 1% will fight to the very end. And in the end, nothing will change. The rest of us has to pay for it one way or another.
I have not seen deflation in anything important besides gasoline.
Our economy does not function on one commodity like gasoline alone. But paying less at the pump would let us spend our cash on something else. That should enhance our consumption and help the economy overall.
Deflation? Tova, you really think so? The opposite is going to happen, when everyone prints more cash. Swiss is joining the bandwagon now with a threat to charge you 0.75% if you save or hold Swiss Frank. China, Korea and Japan are dumping their cash. Everyone is fighting so hard to keep their currency lower. If that is the intention, then inflation should happen. The deflationary pressure is purely emotional at this stage.
Don't worry, all the cash is heading straight to US, just like our blood gushing into the lower part of our body when we see a beautiful naked woman.
It is a shame. The solution to save the rich investors in the last recession was to suck up the money from the rest and distribute it among the rich. The QE's intended target was exactly that. That's why the price of commodity including food and oil went up during the last recession.
Now the rich has recovered some what, those kids who have no control over are suffering. It is a shame. There is a light at the end of this tunnel. But it is still a shame.
The home ownership rate does not relate to actual number of sales. One person may own multiple homes. If this is the case, then we can infer that the recent economic recovery has resulted in lopsided distribution of wealth.
When the economy was bad, the Feds printed so much money to the rich. The rich used that money to drive the price of gasoline up. The demand for oil in China has not waned. Their supposed GDP is still growing. So the decrease in price of oil in recent can't be blamed on China's demand. Actually, the rich has sucked up enough profit from the oil, and they are moving on. Since Feds are ending the QE, all the money is coming back to US. Combined with the money coming form Korea, China and Japan, our economy is going to be better for the next few years.
If you feel that the real estate market has not been performing well in the recent months, it is just a calm before the storm. This recovery has hurt the middle class, thanks to the US government and Feds, but you will see a strong recovery coming due to the fact that so much cash coming to US. The middle class should finally see some wage increase and bonus. Take my word for it.
Now the rich does not see the need to suck up so much from the middle class through gasoline, commodity, etc, the middle class should finally be able to wiggle around their finance. Instead of spending $500 a month on the gasoline, you only have to pay $250 a month. You can free up that $250 to buy something else or save. This can drive the demand for goods and services. Our economy will finally see the wheel turning.
Take the last recession as your lesson to your heart. Save. Do not spend on frivolous things. Do not go for the huge house that costs you over 5 times your salary. Be frugal and save whenever possible. Cause people are ultimately an idiot. They will repeat the same mistake over and over and over. You have the choice to become one or not. The hotter the economy gets, you need to keep your cool. Many of you won't.
Sorry, I do not buy your premise that we are on the verge of an economic boom. If wages were increasing I might tend to believe your thoughts.
Well, unfortunately, the verge means we are about to. I have never said we are in the midst. Not everyone is going to catch this economic boom. You have to be in the right place. But most people will enjoy higher wage and better investment returns. If you don't invest or look for a better paying job, then it will completely miss you.
It is not a premise that our country and the market will be flooded with cash. It is a fact. knowing this, you should figure out what to do yourself. Regardless whether you catch this economic boom or not, one thing is for sure. The down turn which follows will not miss everyone. Prepare. We are too greedy and too stupid to keep good thing going forever.
You mean to tell me the alternative was better than Obama?
1. The big investors do not have to dump the properties to cause a price erosion. They can sit with nice income. The rent is increasing and the job market is healthy. If the ROI is still better than 5%, why dump it?
2. What foreign buyers from Russia and Europe? It is Chinese. While they may be slowing down cyclically, Chinese will continue to exit their domestic market to invest here in California. With the QE from other countries like Korea, China and Japan, there will be plenty of cash to go around. On top of that, the money we have printed to rescue the rich, is coming back to US. The investment money to increase the price of oil is coming back to the US. That money has to go into some investment.
3. OK, I am going to repeat like a broken record. The market in US will be flooded with cash. We won't know what to do with it. There will be plenty of cash to go around for everyone. Yeah. it will make you go crazy. The money is like a drug. Once you are addicted to it, you won't shake it off. People will spend and spend till their brains melt. It will take at least 3 to 5 years before realizing that this brain malfunction is causing misery. But until then we are OK.
4. Why would lenders be skittish with all the cash? The investor will demand the lender to make more loans available. I am going to repeat again and again and again, people are going to repeat the History like a broken record. Hence I am forced to act like one here.
5. Fed's increasing the interest rate? OK, they increase it by 0.1%, it won't make a huge difference. Libor is going to continue to stay at historical low. Yes, if you bought the house that is 6X your annual income. Going from 4% to 6% would mean 12% increase on your monthly payment. sure, it is going to hurt. But in reality, it does not happen. If it goes up to 4.5% from 4%, then the increase is 3%. Your salary should go up at least 5% to 10% with this economic boom, you can absorb the increase quite handsomely.
I am going to say it for one last time. The time is going to be good, but it is not going to last forever. People are too greedy and too stupid to keep anything good forever.
Are you a moron?
We have a huge back log of homes to be foreclosed from the last down turn. We have spend billions of tax dollars to keep them off the market to buoy the housing price. But those properties have to be foreclosed eventually. Remember that the bank was able to hold them off the foreclosed market, because of our tax dollars and 0% FED's overnight interest rate.
Isn't it then natural for the bank to damp those properties now the market has recovered some what? It is a delicate balance. The bank doesn't want to dump all the properties into the market. But by the spring of 2015, you will see the foreclosure market beginning to wane.
At the end of 2015, you will see the real estate market coming back. That is as long as economy in Russia does not implode. Our economy is better, since all the cash we have printed is coming back to US. Korea, China and Japan are dumping more cash into out market. We are in the beginning stage of boom. If you are into the real estate market, you still have a month at the most to make it.
Trust me on this one.
Even if you are not in the real estate market, use this economic boom to earn more, save more and invest more. Cause after the economic boom, there will always be an implosion. That could be as early as 2018 depending on how stupid people would get. Don't quote me on the date. You must carefully look at the market and how crazy people are going to get. Try to time yourself just before the peak to cash everything out. You will be sitting pretty with the cash, while everyone else would be lining up at the food stamps.
Yeah, if you rob, hold a real or fake gun, fight with police officers, do something illegal and criminal. In my book, you are asking for it. Every stupid case, not all, I hear where there is shooting death by police, the victim is not so innocent.
If you don't count the death of people who are criminal or have history, I am sure it would be so much less than 1X even.
Once again, I am not saying it never happens. But go back and count again with the dead people without the history of crime. The number should look completely different.
This is a classic case of omission of truth to make something out of nothing. You must read a fine print. Yes, I want police officers to shoot you, if you are breaking a law.
less money=lower price
I guess this is a hard concept for idiots to comprehend.
This is the money that was going to the rich people to save them from the last bubble. Now, it is staying with us.
I won't worry too much, if the earnings are in line with the stock price. If not, you see the dot com bubble all over again.